R&Q completes three December deals
Bermuda-based insurance services company Randall & Quilter Investment Holdings (R&Q) has rounded off 2015 with a flurry of deals.
On Christmas Eve, the firm announced the novation of liabilities for policy years 2000—2003 from Golden Rule Ltd, a Cayman domiciled entity, to the R&Q-owned segregated account company R&Q Quest (SAC) Ltd.
This came two days R&Q announced a transfer of business from a UK insurer, Liverpool & London Steamship Protection & Indemnity Association Ltd (L&L), and one week after its announcement of its first novation deal with a Vermont captive, Automobile Dealers Insurance Company, Inc.
The Golden Rule captive provided workers' compensation, general liability, auto liability and auto physical damage coverage to its members through reinsurance beginning on January 1, 2000. These policies were fronted by Travelers Indemnity Company.
Ken Randall, chairman and chief executive officer of R&Q, said: “We are pleased to complete this novation. It is another transaction that demonstrates our market leading position in providing captive exit solutions and we are pleased to have executed another deal in Cayman, one of the world's premier captive domiciles.”
The L&L deal involved the transfer of business to R&Q Insurance (Malta) Ltd (RQIM).
L&L was incorporated in 1881 as a mutual marine liability insurer (referred to as a P&I Club) and went into run-off in February 2000. As the traditional P&I claims have generally matured, L&L's residual insurance liabilities mostly relate to asbestos and other industrial disease claims from crew and dock workers.
L&L decided in 2013 to explore exit solutions for its legacy insurance liabilities due to concerns over increasing costs and management arising from compliance with Solvency II, the European Union's enhanced regulatory regime for insurers from 2016.
RQIM was incorporated in 2013 for the purpose of consolidating owned and acquired insurance, reinsurance and captive portfolios from across Europe. L&L is the sixth transaction to be absorbed by RQIM to date and R&Q said in a statement that there is “a healthy future pipeline”.
Mr Randall said: “We are delighted to have completed the transfer of this book of business, especially as it is the first time a P&I Club has transferred business to an insurance company in such a manner.
“This transaction adds to the scale of R&Q Insurance (Malta), being the largest external Part VII the Group has undertaken to date and we are pleased to be able to provide longevity of service and security to the Club's policyholders, members and claimants.”